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The Corporate Transparency Act: Upcoming Year-End Reporting Deadline

As a reminder, the Corporate Transparency Act’s (CTA) year-end reporting deadline is quickly approaching for certain companies. Companies subject to the CTA’s reporting requirements (Reporting Companies) and created or registered prior to January 1, 2024 are required to file their initial beneficial ownership information (BOI) report by January 1, 2025 with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

Who does the CTA apply to?

The CTA establishes uniform BOI reporting requirements for certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States. There are 23 exemptions to the reporting requirements of the CTA, which generally apply to larger, more heavily regulated entities that are likely already subject to other ownership information reporting requirements (e.g., governmental authorities, banks, publicly traded companies, credit unions, insurance companies, public utilities, certain non-profit entities, among others). If your company does not fit under any of the 23 exemptions, you must comply with the reporting requirements of the CTA.

When is the initial BOI report due?

The deadline for Reporting Companies to file their initial BOI report with FinCEN varies depending on the date the entity is created or registered in the United States. Reporting Companies created or registered prior to January 1, 2024 are required to file their initial BOI report by January 1, 2025. Reporting Companies formed during 2024 must file their BOI report within 90 days of formation.

Are there any penalties for violations of the CTA?

Both individuals and corporate entities who willfully fail to file a complete BOI report or who willfully file false information with FinCEN may be subject to penalties under the CTA. Penalties include civil penalties of up to $500 for each day the violation continues or criminal penalties of up to two years imprisonment and a fine of up to $10,000.

What next steps should companies consider?

With this reporting deadline quickly approaching, companies formed prior to 2024 should take steps now, if not already considered, to determine whether they are subject to this reporting deadline or otherwise fall within one of the 23 exemptions to the reporting requirements. As a best practice, companies subject to the reporting requirements of the CTA should plan to file their initial BOI report with FinCEN well in advance of the January 1, 2025 deadline.

Scopelitis is available to assist businesses in complying with these requirements. Contact Greg Feary, Jay Robinson, Todd Metzger, Katie Feary-Gardner, J.D. Robinson, or Jordan Yu with questions.

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News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

The Corporate Transparency Act: Upcoming Year-End Reporting Deadline

As a reminder, the Corporate Transparency Act’s (CTA) year-end reporting deadline is quickly approaching for certain companies. Companies subject to the CTA’s reporting requirements (Reporting Companies) and created or registered prior to January 1, 2024 are required to file their initial beneficial ownership information (BOI) report by January 1, 2025 with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

Who does the CTA apply to?

The CTA establishes uniform BOI reporting requirements for certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States. There are 23 exemptions to the reporting requirements of the CTA, which generally apply to larger, more heavily regulated entities that are likely already subject to other ownership information reporting requirements (e.g., governmental authorities, banks, publicly traded companies, credit unions, insurance companies, public utilities, certain non-profit entities, among others). If your company does not fit under any of the 23 exemptions, you must comply with the reporting requirements of the CTA.

When is the initial BOI report due?

The deadline for Reporting Companies to file their initial BOI report with FinCEN varies depending on the date the entity is created or registered in the United States. Reporting Companies created or registered prior to January 1, 2024 are required to file their initial BOI report by January 1, 2025. Reporting Companies formed during 2024 must file their BOI report within 90 days of formation.

Are there any penalties for violations of the CTA?

Both individuals and corporate entities who willfully fail to file a complete BOI report or who willfully file false information with FinCEN may be subject to penalties under the CTA. Penalties include civil penalties of up to $500 for each day the violation continues or criminal penalties of up to two years imprisonment and a fine of up to $10,000.

What next steps should companies consider?

With this reporting deadline quickly approaching, companies formed prior to 2024 should take steps now, if not already considered, to determine whether they are subject to this reporting deadline or otherwise fall within one of the 23 exemptions to the reporting requirements. As a best practice, companies subject to the reporting requirements of the CTA should plan to file their initial BOI report with FinCEN well in advance of the January 1, 2025 deadline.

Scopelitis is available to assist businesses in complying with these requirements. Contact Greg Feary, Jay Robinson, Todd Metzger, Katie Feary-Gardner, J.D. Robinson, or Jordan Yu with questions.

News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.